Sage X3 (formerly Sage Enterprise Management Cloud) – How it Benefits Manufacturers and Distributors

Manufacturers and distributors have highly specific requirements for the functionality of their business management solutions and Sage X3 (formerly known as Sage Enterprise Management) has a long-standing reputation for being a robust Enterprise Resource Planning (ERP) solution that caters directly to those specific needs. However with the growing prevalence of cloud, what happens when manufacturers and distributors want to switch to a cloud ERP?

Do cloud capabilities come at the expense of functionality?

Is there actually a benefit of switching to cloud?

Findings from Deloitte indicate that SMEs using cloud grow 21% more profitable and 26% faster than their peers that do not use cloud1, so let’s explore the impact of cloud for manufacturers and distributors specifically. Sage X3 is able to be deployed in a number of ways: on-premise, as a hybrid cloud solution, or as a full-fledged cloud solution let’s also see what it brings to the manufacturing & distributing table.

What Sage X3 (formerly Sage Business Cloud Enterprise Management) means for Manufacturers and Distributors

While additional modules can provide more extensive functionality as required, features like basic inventory management, manufacturing management, purchasing, global management and multi-legislation are already included in Sage X3 (formerly Sage Enterprise Management), whereas typical cloud offerings often offer no basic functionality for these features unless businesses are prepared to pay extra for additional modules. Since many businesses are working with a restricted budget, this can pose issues with the functionality that they have access to and may cause them to develop workarounds with outside solutions that aren’t integrated. On the contrary, Sage X3 offers the same centralized hub for your business as Sage X3 (formerly Enterprise Management) on-premise does, with the added benefit of cloud flexibility and capabilities.

Having all of the software you need integrated into one solution is important because it gives your business the whole picture without having to cross-reference data from multiple sources. While small inaccuracies in data or somewhat inefficient processes might seem insignificant in other industries, in manufacturing and distribution they can cause massive disruptions. For example, if your inventory is off by so much as 50 items it could offset your schedules for weeks. Additionally, having one unified solution improves productivity among employees because they can work more efficiently, and also decreases the chances of data errors such as duplicate or missing entries.


Manufacturing and distribution industries are so specific that sometimes organizations require complementary solutions to expand their functionality, even if their ERP has a wide range of features. Sage has built all of their complementary solutions to be compatible with both on-premise and cloud deployments, however the same can’t be said for third-party add-ons.

It’s actually becoming more common for third-party complementary solutions to be built exclusively for the cloud, which makes them inaccessible for businesses that only have their ERP deployed on-premise. Besides the previously mentioned benefits of cloud, having access to the cloud ensures to your ERP can integrate with the complementary solutions you require.


Cloud opens the door to mobile access of your ERP, so you can access your ERP anywhere, anytime and from any device with an internet connection. Whether it’s a desktop computer at the office, a tablet in your warehouse or your mobile phone while you’re visiting a client, real-time data is always at your fingertips.

In manufacturing and distribution, access to accurate data is essential for daily functioning and Sage X3 (formerly Sage Enterprise Management) allows for quicker and more efficient product management. Instead of being chained to your computer, you can take your ERP with you as you navigate your warehouse, tracing materials via lot, sub-lot and serial number, double-checking inventory, or even managing your Bill of Material (BOM) with the products directly in front of you.


One of the biggest hurdles small to medium-sized manufacturers and distributors face is having system requirements that surpass their budget and resources available. Deploying Sage X3 in the cloud allows organizations to experience the enterprise management tool’s full functionality with minimal overhead costs. You don’t have the hardware costs involved with hosting your solution on-site (i.e. servers) and you don’t require extensive IT staff to help manage your solution. The IT requirements that you do have surrounding your ERP can be cost-effectively outsourced to a Managed Services Provider (MSP) who will be able to help you manage your solution worry-free.

Sage X3 frees up more resources that organizations would have otherwise had to dedicate to managing their ERP which can lead to additional benefits, since 70% of SMEs report reinvesting money saved back into their business as a result of moving to the cloud. 2

Determining if a Cloud ERP is the right move for you

Determining whether or not you should move your ERP into the cloud is a decision that many organizations are facing right now, particularly with the growing prevalence of cloud in the ERP industry. Sage X3 stands out as a leading cloud solution for manufacturers and distributors because it offers the same robust and reliable functionality that the on-premise ERP has, but with even more flexibility.

Organizations using an on-premise Sage X3 solution (formerly Sage Enterprise Management) have the benefit of being able to transition to a cloud solution without the hefty price tag involved with implementing a completely different ERP solution simply for access to cloud.

Moving to the cloud has proven to drive growth and open opportunities for SMBs, it’s just a matter of deciding whether or not you think cloud is the right fit for you. Unsure what the cloud is and how it could affect your business? Download our white paper to learn more.